Question: Canada will be adopting the new standard, ISA 701, which will include reporting of assessed risks of material misstatement identified by the auditor and their

Canada will be adopting the new standard, ISA 701, which will include reporting of assessed risks of material misstatement identified by the auditor and their effect on the overall audit strategy. The United Kingdom has already introduced these audit reporting standards.
To see an example of report that has been issued following these reporting standards, access Rolls-Royce's 2013 annual report at www.rolls-royce.com/reports/2013/_assets/ pdf / RR%20 Other Information % 20 127-141.pdf .
REQUIRED
a. Explain how this report differs from the standard prescribed by current Canadian audit standards.
b. If you were a shareholder of the company, what information in the auditor's report would you consider to be really useful in helping you assess the quality of Rolls- Royce's financial statements?
c. Do you think this type of report is more useful than the standard currently used in Canada? Why or why not?

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